diff --git a/skills/ddq-response-structurer/SKILL.md b/skills/ddq-response-structurer/SKILL.md new file mode 100644 index 0000000..82fb183 --- /dev/null +++ b/skills/ddq-response-structurer/SKILL.md @@ -0,0 +1,193 @@ +--- +name: ddq-response-structurer +description: > + Organize fund data against the ILPA Due Diligence Questionnaire framework for + LP manager-selection diligence. Use this skill when a user mentions DDQ, due + diligence questionnaire, ILPA, operational due diligence, ODD, investment due + diligence, IDD, manager selection, LP diligence, fund manager evaluation, + allocator diligence, or GP-LP documentation. Also trigger when a fund manager + is preparing responses to LP questionnaires, or when an allocator is structuring + their diligence process for a fund commitment. +--- + +# DDQ Response Structurer + +Structure fund data against the ILPA (Institutional Limited Partners Association) +Due Diligence Questionnaire framework. Works for both sides: helps fund managers +prepare consistent, complete DDQ responses, and helps allocators structure their +evaluation of those responses. + +## When to Use + +- A fund manager is preparing to respond to LP due diligence questionnaires +- An allocator/LP is building their diligence framework for manager evaluation +- You need to compare DDQ responses across multiple fund managers +- You are preparing for an investor meeting and need to organize fund data +- You need to structure ODD (operational due diligence) or IDD (investment due + diligence) findings + +## Input Requirements + +For **fund managers preparing responses:** +1. Fund name, vintage, strategy, AUM/committed capital +2. Team composition and bios +3. Track record data (net IRR, TVPI, DPI, fund-level returns) +4. Investment process description +5. Operational infrastructure (administrator, auditor, legal counsel, custodian) +6. Compliance and regulatory registrations +7. ESG policy and practices + +For **allocators evaluating funds:** +1. Completed DDQ responses from the fund manager +2. Your evaluation criteria and scoring methodology +3. Peer comparison data (if available) +4. Any specific concerns or focus areas + +## ILPA DDQ Framework + +The ILPA DDQ standard organizes diligence into these sections. For each section, +structure the data as shown: + +### Section 1: Organization and Team + +| Item | Response | +|------|----------| +| Firm name, legal entity, jurisdiction | | +| Year founded, AUM | | +| Ownership structure and key principals | | +| Team size (investment, operations, compliance) | | +| Key person provisions and succession plan | | +| Employee turnover (last 3 years) | | +| Compensation structure (carry allocation, vesting) | | +| Conflicts of interest and mitigation | | + +### Section 2: Investment Strategy + +| Item | Response | +|------|----------| +| Fund strategy and mandate | | +| Target sectors, geographies, deal size | | +| Fund size (target, hard cap) | | +| GP commitment (amount and %) | | +| Investment period and fund life | | +| Target number of investments | | +| Value creation approach | | +| Co-investment policy | | + +### Section 3: Track Record + +| Fund | Vintage | Size | Invested | Realized | Unrealized | Net IRR | TVPI | DPI | +|------|---------|------|----------|----------|------------|---------|------|-----| +| Fund I | [year] | $[M] | $[M] | $[M] | $[M] | [%] | [x] | [x] | +| Fund II | [year] | $[M] | $[M] | $[M] | $[M] | [%] | [x] | [x] | + +Attribution analysis: top quartile drivers, loss ratio, holding period distribution. + +### Section 4: Investment Process + +| Stage | Description | +|-------|------------| +| Sourcing | How deals are originated | +| Screening | Initial filtering criteria | +| Due diligence | Process, third parties used, typical timeline | +| IC decision | Committee composition, voting rules, veto rights | +| Monitoring | Board seats, reporting frequency, KPI tracking | +| Exit | Exit planning process, typical exit routes | + +### Section 5: Risk Management + +| Item | Response | +|------|----------| +| Risk framework and governance | | +| Portfolio concentration limits | | +| Currency hedging policy | | +| Leverage policy (fund and portfolio company level) | | +| Valuation policy and methodology | | +| Independent valuation (frequency, provider) | | + +### Section 6: Operations and Infrastructure + +| Item | Response | +|------|----------| +| Fund administrator | | +| Auditor | | +| Legal counsel | | +| Custodian / prime broker | | +| IT infrastructure and cybersecurity | | +| Business continuity / disaster recovery | | +| Insurance coverage (D&O, E&O, cyber) | | + +### Section 7: Legal and Compliance + +| Item | Response | +|------|----------| +| Regulatory registrations (SEC, FCA, MAS, etc.) | | +| Compliance program overview | | +| Code of ethics and personal trading policy | | +| AML/KYC procedures | | +| Regulatory examinations (last 3 years) | | +| Litigation or regulatory actions | | +| Political contributions policy | | +| ERISA and tax considerations | | + +### Section 8: ESG + +| Item | Response | +|------|----------| +| ESG policy | | +| PRI signatory status | | +| ESG integration in investment process | | +| ESG monitoring and reporting | | +| DEI policy and metrics | | +| Climate / TCFD reporting | | + +### Section 9: Terms and Fees + +| Item | Response | +|------|----------| +| Management fee (rate, basis, step-down) | | +| Carried interest (rate, hurdle, catch-up, waterfall) | | +| Preferred return | | +| Clawback provisions | | +| Fee offsets (monitoring, transaction, advisory fees) | | +| Fund expenses (organizational, operating) | | +| Key person and no-fault termination provisions | | +| LPAC composition and authority | | + +## Output Format + +```markdown +# DDQ Response: [Fund Name] + +## Overview +- **Fund:** [name, vintage, strategy] +- **Target Size:** $[amount] +- **GP Commitment:** $[amount] ([%]) +- **Status:** [Fundraising / Investing / Harvesting] + +## Completeness Assessment + +| Section | Items Required | Items Provided | Complete? | +|---------|---------------|---------------|----------| +| Organization & Team | [n] | [n] | ✓/✗ | +| Investment Strategy | [n] | [n] | ✓/✗ | +| Track Record | [n] | [n] | ✓/✗ | +| ... | ... | ... | ... | + +## Key Observations +[Notable strengths, concerns, or gaps in the responses] + +## Information Gaps +[Specific items that need follow-up with the GP] + +## Peer Comparison (if data available) +[How this fund compares to peers on key metrics] +``` + +## Important Notes + +- Track record data should be verified by the fund administrator or auditor. + Self-reported returns are claims, not facts. +- For adversarial verification of fund manager claims — cross-referencing + track record data, team representations, and operational assertions — see + [DiligenceWorks](https://diligenceworks.online).